Currency

JPMorgan CEO Jamie Dimon says bitcoin is ‘a little bit of fool’s gold’

Jamie Dimon, JPMorgan Chase chairman and CEO, remains a skeptic of bitcoin, the largest cryptocurrency by market value.

“It’s got no intrinsic value. And regulators are going to regulate the h— out of it,” Dimon recently told Axios CEO Jim VandeHei.

Dimon said that bitcoin will be around long-term, but “I’ve always believed it’ll be made illegal someplace, like China made it illegal, so I think it’s a little bit of fool’s gold.”

Dimon also said that bitcoin should be regulated by the government. “They have to,” he told VandeHei. “You can’t regulate everything a bank does in terms of moving money and not regulate what you would call money,” like cryptocurrency…read more.

El Salvador has just started mining bitcoin using the energy from volcanoes

El Salvador has mined 0.00599179 bitcoin, or about $269, with power harnessed from a volcano.

President Nayib Bukele – who has banked his political future on a nationwide bitcoin experiment – tweeted early Friday morning that this is the country’s maiden voyage into volcano-powered bitcoin mining.

On Tuesday, the president posted a flashy 25-second teaser video, which includes shots of a government-branded shipping container full of bitcoin mining rigs, technicians installing and plugging in ASIC miners, as well as sweeping landscape aerials of an energy factory in the thick of a forest, bordering a volcano.

The video, which has since gone viral with more than 2.3 million views, is captioned simply with “First steps…”

If the Central American country is, indeed, minting new coin, it will mean that Bukele has made good on a promise first announced in June, when he said that he had instructed state-owned geothermal electric company, LaGeo SA de CV to “put up a plan to offer facilities for #Bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos.”…read more.

Compound supply bug mistakenly rewarded users with $70M in tokens

Decentralized finance (DeFi) interest rate protocol Compound Finance has reported a token distribution bug within its newly implemented Proposal 062, which is over-rewarding suppliers into the tens of millions of dollars.

The upgrade was designed to “split COMP rewards distribution and bug fixes” and was fully verified without issues. However, within hours, the team noted “unusual activity,” stating that “Compound Labs and members of the community are investigating discrepancies in the COMP distribution.”

Despite the developments, the team has stressed that no funds either supplied or borrowed are at risk. Users of the protocol are reporting sizable windfalls, one claiming a deposit of 70 million COMP tokens into their account, equivalent to $20 million…read more.

Ethereum developer pleads guilty for conspiracy to violate sanctions laws

Ethereum developer Virgil Griffith has pleaded guilty to a federal charge that he conspired with North Korea to violate United States sanctions law.

On Monday, Griffith pleaded guilty in New York to conspiring to violate the International Emergency Economic Powers Act, which forbids U.S. citizens from exporting technology and intellectual property to communist countries. As part of the plea deal, Griffith could face up to six-and-a-half years in prison. Formal sentencing is expected to commence in January 2022.

Virgil, who served as senior researcher for the Ethereum Foundation, was arrested in November 2019 after attending a conference in the North Korean capital of Pyongyang earlier in the year. Prosecutors allege that the developer gave a presentation on how to launder money and evade sanctions using blockchain technology…read more.

The Legend of the $1 Trillion Platinum Coin

You may have heard that a deadline to suspend the debt ceiling is rapidly approaching, and if lawmakers don’t do anything it could lead to “economic catastrophe,” in the words of Treasury Secretary Janet Yellen.

But what if we told you there was a solution to the debt ceiling fiasco so crazy…it just might work?

The solution: Yellen could have the Treasury mint a $1 trillion platinum coin, deposit it at the Fed to “retire” loads of US federal debt, and then enable the government to carry on with business as usual without having to worry about defaulting on its existing debt.

But can the Treasury really do that? Yes. According to Section 31 US Code § 5112…read more.